By James Rodger
Chancellor Rachel Reeves may raid pensions to fund her massive benefits and welfare bill climbdown. The Labour Party Chancellor is expected to target wealthier taxpayers if forced to raise funds to cover the 拢5 billion shortfall created by the U-turn. There are “always other options within the tax system around tax fairness in particular,” officials said. The i Paper reports Ms Reeves could examine “not so much a wealth tax”, but “other options that the chancellor can look [at], like at some of the current anomalies within the tax system”. Ms Reeves could remove tax-free salary sacrifice schemes, reform pension tax relief structures or rais capital gains tax. The Chancellor declined to speculate on specific measures, saying: “I’m not going to speculate because the budget will be in the autumn… READ MORE Major high street brand cuts 1,200 jobs as sales fall by nearly 拢100million “We’ll get a new forecast and we’ll do the budget later this year.” She said: “I’m also very, very clear that that stability that we’ve been able to return to the economy which has enabled the Bank of England to cut interests rates four times is only possible because of the fiscal discipline which is underpinned by the fiscal rules.” Tax expert Judith Freeman, a research fellow at the Institute for Fiscal Studies and Oxford professor of tax law, suggested the Government should consider “doing the sensible thing and raising income tax or VAT”. Freeman said: “They seem to have good reason to break their manifesto promises, and indeed I think they already have done so in various ways, but I know they feel hemmed in by this promise. “I am sure they are thinking of all sorts of alternatives. Pensions are a big area that needs reform, but this needs careful planning if anything is to be changed. “Greater alignment of CGT and income tax is one thing they could be considering.”